China could lead Africa's renewable energy market

A report by Boston University's Global Development Policy Center and the African Economic Research Consortium concludes that China can lead investments in green energy in Africa.

According to a document quoted by ReutersChina should contribute to the energy transition through trade, financing and Foreign Direct Investment.

The study states that the African continent has one of the greatest potentials for the development of green energies, but that for China to take advantage of this, it will be necessary to go back about two decades and put policies for divestment from fossil fuels back on track.

Loans to renewable energies, such as solar and wind, granted by China's two main development finance institutions made up only 2% of their 52 billion dollars of loans in the energy sector between 2000 and 2022, while more than 50% are allocated to fossil fuels.

"Although this route has led to export revenues for African economies, African countries are still not receiving the full benefits of renewable energy technologies," says the report.

By 2022, fossil fuels would account for around 75% of Africa's total electricity production and around 90% of energy consumption, according to the report

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